Environmental, Social, and Governance (ESG) factors are increasingly becoming central to corporate strategy, and in-house legal teams are playing a crucial role in guiding organisations through these evolving challenges. As the regulatory landscape tightens around ESG issues, legal professionals are tasked with ensuring compliance while mitigating risks such as greenwashing and reputational damage. With new legislation aimed at increasing corporate transparency on ESG-related practices, legal teams must work closely with compliance and operational departments to navigate this complex landscape.

One of the most pressing issues for in-house legal teams is managing the risk of greenwashing—when companies exaggerate their sustainability efforts or mislead stakeholders about their environmental impact. The potential legal consequences of greenwashing are significant, as regulators are increasingly cracking down on misleading claims. Legal professionals are also tasked with ensuring that the company’s ESG strategies are backed by accurate data and transparent reporting, to avoid these risks.

Beyond compliance and risk management, ESG presents opportunities for in-house counsel to support their organisation’s sustainability goals and values. Legal teams are well-positioned to lead initiatives that align the company’s operations with ESG principles, turning regulatory challenges into a competitive advantage. By actively engaging with the ESG agenda, legal teams can drive corporate transformation and foster trust with stakeholders.

Read Further: ESG in the Legal Function